A global memory shortage is driving up prices for consumer electronics as memory manufacturers shift production capacity from consumer-grade memory (DDR, LPDDR) to high-bandwidth memory (HBM) for AI data centers. HBM now consumes 20% of wafer capacity, up from just 2%, and requires three times more wafer space per gigabyte than consumer memory. This shift is particularly impacting the sub-$100 smartphone market, which is crucial for developing regions like Africa and South Asia.
Background
The semiconductor industry has been consolidating for years, with only three major memory manufacturers remaining. High-bandwidth memory (HBM) is a specialized type of memory crucial for AI/ML workloads due to its high bandwidth capabilities.
- Source
- Simon Willison
- Published
- May 23, 2026 at 06:01 AM
- Score
- 7.0 / 10